Overseas investors, commonly known as Foreign Portfolio Investors, or FPIs, remained net sellers of Indian equities for eight consecutive sessions on Wednesday, while domestic institutional investors (DIIs) bought stocks worth Rs 3,508.61 crore.
According to provisional data from the National Stock Exchange (NSE), FPIs offloaded stocks worth Rs 4,562.71 crore.
In the last five sessions, FPIs have sold equities valued at Rs 43,725.94 crore, while domestic institutional investors have purchased shares worth Rs 45,573.45 crore.
In October, including Wednesday sales, FPIs offloaded stocks worth Rs 49,305.29 crore, whereas domestic institutional investors mopped up stocks worth Rs 50,183 crore. In September, FPIs sold stocks valued at Rs 15,423.35 crore, while DIIs purchased stocks valued at Rs 31,860.26 crore.
Foreign institutions have been net buyers of Rs 50,315 crore worth of Indian equities so far in 2024, according to data from the National Securities Depository Ltd., updated till the previous trading day.
The highest selling by the FPIs happened on Oct. 3, when the FPIs offloaded equities worth Rs 15,243.27 crore, while the DIIs recorded peak buying as the NSE Nifty 50, and BSE Sensex saw a steep fall following the Securities and Exchange Board of India's curbs on futures trading and geopolitical tension in the Middle East.
"The Reserve Bank of India's decision to maintain the repo rate at 6.5% while shifting to a neutral stance reflects a balanced approach to India's economic landscape. This move was largely anticipated, given the ongoing geopolitical tensions and rising crude oil prices, which pose potential inflationary risks," said Rohit Sarin, co-founder of Client Associates.
"The neutral stance is a positive signal, acknowledging India's robust economic growth trajectory. With the RBI maintaining its fiscal 2025 GDP growth forecast at 7.2% and inflation outlook at 4.5%, there's cautious optimism about the economy's resilience. This decision demonstrates the central bank's commitment to supporting growth while remaining vigilant about inflationary pressures," he added.
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